The stock closed at $8.34, up $1.13 for the day. In the last 52 weeks, shares of Halozyme reached a high of $13.30 and a low of $3.86.

BMO Capital Markets upgraded its rating on the biotech from neutral to outperform, on anticipation of greater revenue from drugs made with its technology.

Halozyme's technology allows large-molecule drugs such as monoclonal antibodies to be delivered with a subcutaneous injection. These drugs now are generally given intravenously, which requires patients to go to an infusion center. The company has teamed with Swiss drug giant Roche to develop a subcutaneous formulation for its best-selling cancer drug Herceptin.

Roche is also testing a subcutaneous formulation of the monoclonal antibody Rituxan, known in Europe as MabThera, for patients with non-Hodgkin's lymphoma and chronic lymphocytic leukemia. Rituxan was discovered by San Diego-based Idec Pharmaceuticals, now part of Weston, Mass.-based Biogen Idec. Global Rituxan sales were estimated at nearly $7 billion in 2012.

Giving Herceptin and Rituxan subcutaneously would make these blockbuster drugs easier to administer, potentially increasing sales while providing advantages against competing drugs that must be infused intravenously.

"After our meeting with management we are increasingly confident in a positive opinion for Herceptin SC in 1Q13 and favorable positioning by partner Roche as a line extension to $6B+ brand Herceptin," a BMO Capital research note on Halozyme stated.

"Nothing new fundamentally was raised by the analyst, although the upgrade demonstrates that bearish sentiment is disappearing, particularly because the company is expected to see its first major product (in collaboration with Roche) hit the market in the next several months," stated an article on the financial website Seeking Alpha.

Halozyme said it ended 2012 with about $100 million cash, and expects to spend about $45 million to $50 million in 2013. The company also took out a $30 million loan from Oxford Finance and Silicon Valley Bank, due Dec. 1, 2016.

The company's flagship drug, Hylenex, makes the subcutaneous layer beneath the skin more permeable. It has received FDA approval to improve subcutaneous fluid administration for hydrating patients, for drug absorption, and for subcutaneous urography, to improve resorption of radiopaque agents.